tv Capitol Hill Hearings CSPAN July 2, 2013 7:30pm-8:01pm EDT
introduction. thank you all for being here this morning. thank you for being here. it seems we focus on stock prices in the markets. when i look up your stock prices , and compare it to the s&p 500, i was blown away. iad what i've been doing -- did not realize how well you were doing until i charted it. 100%.prices have been up that is phenomenal. i wonder how you guys feel about that in terms of can you keep the momentum going? >> we certainly like the fact that there is been a lot of value creation. it has been hard work. we have grown market share in the u.s. we have grown our international business aggressively.
when i took over seven years ago, we were dealing $720 million in profits as a country. this past year, we made more money internationally and we get as a whole company. there is been a lot of expansion outside of the u.s.. they're still been great growth here. we have all been helped by the fact that the advertising market has remained strong. 2009 was the one year where it struggled a little bit. besides that, it has been strong. aboutt can you tell us what you've seen? >> we went to the upfront market early. we have done very well. there has been great demand for our network. there are so many new products coming out. we talked about our stocks doing well. it is not just us. it is the whole industry. it is really a reflection of how much new content there is.
how many new electronic products there are. is producingrica new cars and knew everything. demand has been very strong. people are looking for integrated marketing solutions. technology allows us to do better. we serve a lot of uses for audiences. it has been very good. the u.s. economy has been improving slowly but surely. u.s., it has been difficult. it is opportunity for the three of us to expand our networks. and to launch new ones. >> what do you do with stock prices? do you worry about the momentum issues? >> i like to say when everything is going your way, you're
n th wronga little bit of paran. our business is still undervalued. we are pursuing a straightforward strategy about building to scale, organic growth. europe is pretty strong. it is about managing our capital structure property. if we do those right, we will achieve the main goal. create value. all about creating value. as will we do. you do that by running your business. about theorried future. i feel pretty good right now. >> one of the keys for us has been that we have a belief system here in the u.s. that we if we can tell great stories that people will still come.
in the last four years, we have lots -- launched a channels in the u.s. own is a very successful channel for us. top channel for african-american women in the last few weeks. that did not exist four years ago. the partnership and the distributors, and the content owners, it is still that same recipe. if we can put great content on the air, we can attract reviewers and build asset value. >> you are spending even more on content this year. >> we spent last year $200 million more than the year before. with that, we were able to grow double digits here in the u.s., and better than that outside. we are investing more this year. we believe if we could put better content on the air, that we can grow our own. >> we spent over $3 billion in television content.
we have been growing our investment and programming every year for the recession. that is the lifeblood of our industry. it gets better. we are creating content for all the different strains. not just koppel marjorie content, but made for these -- not just complementary, but made for the devices. >> we spent $2 billion on content. >> not enough. thing i would one leave with programmers here is in europe in particular, we need greater partnerships with our programmers here. we are finding that the free to air broadcast regime in europe who dominate viewership and own a lot of the best content are our best customers.
be aggressive, work with us in europe the same way you are working with operators here. give us the rights we need. consumers want the same things everywhere. they are just at levels of awareness. we're heading the same path. >> what you're finding is that the content producers are much more open to things by video on demand? >> the broadcasters who have 75% of the eyeballs in a typical market are willing and able to offer us the kind of rights we need in the cable industry for doing the things that brian said, and we want someone to that. ,'m not here to make the deal but listening to the money being spent, there is opportunity to keep heartening -- partnering with your. tv everywhere functionality is very intense. we found that it is really a
great environment for the future here. our networks can live and all devices, inside and outside the home. we get higher ratings than when that happens. it is a win-win. resistance toe release some distribution rights? i will say, no complaint. he europe -- europe is a fragmented market. rights are more complex. it is -- programmers have a different model. everybody just trying to find where amy in the middle. been a is probably never better time to be in the content business.
would put our content add-on channels. our content on all of our channels. there are new windows. netflix and amazon is a window. there are distributors here in the u.s., and that is great for us. tv everywhere is a new window. that will be another distributor. our content is going on the web. in terms of streaming, which is now a place where we are spending a fair amount of time. istent on all platforms providing value. since be on that content, and it is been paid for, you see it in better return on investment. >> you bring up over the top. that was not something i was familiar with.
babies these are thinking about all card read is that something that you think is going to be in the near future? >> i really don't. is aasic packaging fantastic value. you look at where the hits are going on, the great writers and producers are showing up, ratings on cable are up. there is more and more that are on cable now than there have ever been in the past. i think that basic cable itself has never been stronger. >> i do not think consumers are going to need an à la carte option when they have the ability to consume the content they are consuming it. will dvr some things. they watch it seamlessly across platforms.
it is all about the experience. it is not about the rights. it is about having the consumer experience, multiple devices. time shifted and play shifted. they'll be the way content is consumed. how it is packaged, and how we do it is not as important, provided we are offering it and that manner. >> it has continually increased. it is something we do not talk about enough as an industry. every once in a while, there are disputes at renewal time. consumers are more more satisfied with the product. it has been referred to as the golden age of programming -- of television. we cannot catch up with the dvr. there is a lot of great content. a lot of interesting ways to use it, to interact with your friends on the second screens while you were watching it. as long as we continue to
increase technological functionality on a distribution side, and continue to drive stories and more content on multiple screens on the content side, consumers will be satisfied. we have to keep economics of it reasonable. if you look at the experience in the recession, it is the mark of a how resilient the industry has been. consumers are satisfied with the product. >> i would agree with you 100%. economics, they must be reasonable. expect youand you are going to get more the next time you go back in terms of the conversation. >> that is how it starts. >> is that true? you are not going to be making less money. >> for us we have 14 channels here.
five years ago, we had four percent market share on cable. today we have over 10%. if we are able to make our channels better, and have more people spending more time with our channels, in the distributors are making more money selling it. viewers are happier with the experience. we are going to be looking at more value. we are spending more on content. we are attracting more people to our channels. >> the nice thing about operating outside the u.s., we spent about five dollars a month on content. for a lot of historical reasons. is shifting. we are spending less and less on linear channels. rightse on hd, on-demand , new digital applications. for us, that is owing to hit. -- that is going to hit.
to shiftingng ways -- of how the pious cutup. we will spend more on content every year. are going up five percent. this a temporary shift. reinvest. >> because we have a lot of users, we are perfect partners for distribution around the world. our video-on-demand content is performing better-than-average because of the adoption phenomenon. closely with all of our partners to meet their needs. on international markets, the needs of varied around the world. we have to adapt our content at each place we operate.
in tv in india is very different from into the in the u.s., uk, or brazil. we think it is an exciting time. we think think about the opportunity to distribute the content in the home on multiple devices that have content at the same time, it is a creative challenge. >> one of the big advantages our content -- they are higher in the u.s.. content -- our content works very well across the world. we take science to 200 countries. they think it is their channel. it feels like the local channel.
the same is true animal planet or discovery. we are finding that we are having that kind of success with id. we can have it feel local. "spongebob" translates pretty well. shore" works pretty well, too. get export to other countries. we are finding more and more content creation in different parts of the world. we're going all over the world world. it is becoming multicultural. india, we are in a joint venture . we now transmit colors in the and so we're grading content everywhere in the world. >> what if the situation europe
right now? we talked about the u.s. economy. what do you see in europe? >> we're in 12 countries in europe. users.ion germany, switzerland, belgium. those markets are the stable markets for us. they are fine. euros.selling 30 for 30 in europe, it is a roughly inexpensive product. we are somewhat protected. i think your buzz going to be fine. -- i think europe is going to be fine. >> for us, i think we have a great story. when we look across western
europe, we have between 6-14 channels. we have been able to grow our business 20% in the last two years. most of those countries are either flat or in recession. we do not expect things are going to turn. we can continue to grow our business internationally, in markets where not only in western europe, but around the world they are flat or in recession, if the economy does turn, we can see real substantial growth beyond what we are seeing now. the demand for broadband is going nowhere but up. we are at 35 megabits on average. 50 megabits on average. it defies the broader macro trends. >> we launched the paramount
channel in spain. we are doing well there. it we are going to expand to the rest of europe. it was a good showcase for us. this is a good time, given that we have much lower market share. it is the time to launch new channels. america,ca -- latin arts of asia, the economies are doing well. >> if you can make one prediction, what would it be? >> there'll be more of the technological development, which will allow people to enjoy content in multiple ways. tv everywhere is getting closer to reality. measurement is getting better. measurement, allows monetization outside of the home in particular, is going to improve
over the next year. that will unleash a lot of content to consumers, especially outside of the home. they'll be good for all of us. it it will tie people more to the subscriptions. it will create more time viewing. >> is the metric still the nielsen metric? >> it is going to be a combination. it is going to be a neilson, and other traditional means of the use, but there are other measurements. we have a lot of first party data. -- we will work with advertisers who are open to solutions. mission ofan out the technologies to reflect consumer engagement. that is what advertisers want. they want consumer engagement and better ways to measure.
>> i hope you can a nor the -- everyonenetflix has an over the top platform. that is a learning opportunity. what we are seeing happen is consumer behavior change dramatically. as long as we change along with that, we have a chance to preempt the impact of those services in europe. netlist is a great product. the brian showed that average cable provider is able to provide everything you get from netflix for no additional cost. it is going to be much easier route for us. we will continue to talk about that and advanced platforms that embrace what consumers really want. that is the key. >> i hope that they are right. at inc. vat -- i think it is a moment.
while we have been talking, there been other technologies that have developed. it is good for us on the content side. i think a look at that -- i take a look at that, and tv everywhere could be a protest application. terrific application. i hope that next year we are here and we are talking about how well tv everywhere is doing, or else what we could do to make it successful. the end it is about what consumers want. i want to thank you for your time today. thank you. we appreciate it. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013]
-- the producers of the tv shows desperate housewives, and breaking bad. that is tomorrow here on c-span. as protests against the role of egyptian president morsi grow, they've issued an ultimatum. spokesmanpartment discuss what is happening at a news briefing today. >> can you bring us up today -- i do realize their foreign minister. he does not have a natural counterpart to get in touch with. has he made calls from the plane? wexler me say first -- >> let me say that our focus
is on being in touch on the highest levels on the ground with our master -- with our ambassador. the president spoke with president morsi yesterday. that.ave with isetary did speak appropriate counterpart. he came down to speak with all of you reading he conveyed the same message that the president conveyed to his counterpart. it is important to listen to the egyptian people, that we are a reiterating that the u.s. is committed to the democratic process in egypt.
it is not support any single party or group. he stressed that democracy is about more than just elections. it is about ensuring the voices of all egyptians are heard. what our goal is, a peaceful, stable, and prosperous egypt raid that is what we are focused on. >> in what capacity was the foreign minister speaking? you consider him to be even representative? >> i would preferred you to him to for ihis exact status. >> again, we are in touch at all levels of government. >> including people who are not in the government anymore. >> i would refer you to the
government of egypt on that. >> can you leverage on what he meant -- can you elaborate on what he meant on being important to listen to the egyptian people. >> he was reiterating what the president said. , more thanocracy just elections, ensuring the people can have their voices heard. peacefully is the goal. you have seen of the president urged president morsi to take steps to show that he is responsive to their concerns. the secretary agrees that that is an important step for the government to take. >> the kinds of steps these might be? what kinds of things does the do. think that morsi could to be responsive to the egyptian people's concerns?
>> i think we have seen people expressing their points of view, and allowing them to do that is an important step. it is part of the process. we know that democracy takes time. what we're seeing happening in egypt is that transpiring over time. in terms of what he can do, he can respect the views of the people. he you heard -- you heard the president's call. there are concerns about violence. they're concerned about violence against women. putting it into that is a said that can be taken on the ground. >> the protesters want him to leave. they want him to step down. they want him out. is it the kind of steps that u.s. things will be good? >> i think we have been very clear on the call to the foreign
minister, as well as the president's call to the present. we are not taking sides in this case. theto makep to us, choices here. our commitment is to allowing the democratic process to take place. it has never been about one individual. it is about hearing and allowing the voices of the egyptians to be heard. >> they reported that president obama has urged president morsi to call early elections to appease the crowd. >> i have seen that report. it is inaccurate. >> how accurate? it appears the united states is not trying to [inaudible] are saying that he has to figure out a way to in this
crisis. one of them would be to call new elections. >> the reports that we have an urging early iron -- early elections are inaccurate. there've been calls for allowing people to peacefully communicate their concerns, allowing people to protest in the capacity, virginia respect for democracy. those are things that have been called for publicly and privately. i was referring to that specific headline mentioned. >> one of the things that the u.s. is looking at is because of democracy is more than elections. what does that mean exactly? thet means that he respects voice of the people over the course of time. not just putting your ballot in. when the occasion presents
itself, allowing for freedom of speech, and encouraging that year-round. >> tomorrow, the president's u.n. ambassador nominee, samantha power live coverage begins at 10:00 a.m. eastern here on c-span. and since bentonite, a conversation on business in america. topics include financial regulation, tax policy, and immigration. we will take your calls and tweets coming up next. we look at the to same-sex marriage cases that the u.s. supreme court ruled on last week. california's proposition 8 and the defense of marriage act. a panel of journalists who cover the court talked-about those in other cases the court decided this term. keeps me up at night